MIRA
INFORM REPORT
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Report Date : |
13.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
AARTI DRUGS
LIMITED |
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Registered Office : |
Plot No. N – 198,
M.I.D.C., Tarapur, Pamtembhi Village, Taluka – Palghar, District Thane – 401 506, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
28.09.1984 |
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Com. Reg. No.: |
11-55433 |
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CIN No.: [Company
Identification No.] |
U37060MM1990PLC055433 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMA18926F |
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PAN No.: [Permanent
Account No.] |
AAACA4410D |
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Legal Form : |
It is a public
limited liability company. The company’s shares are listed on the Stock
Exchanges. |
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Line of Business : |
Manufacturing and
selling of pharmaceuticals and bulk drugs. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 3500000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow by average
30 days |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established pharmaceutical company having satisfactory track. Directors are
reported as experienced, respectable and resourceful industrialist. Their trade
relations are reported as fair. Financial position is satisfactory. Payments
are slow be average 30 days. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered Office : |
Plot No. N – 198,
M.I.D.C., Tarapur, Pamtembhi Village, Taluka – Palghar, District Thane – 401 506, Maharashtra, India |
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Tel. No.: |
91-22-24072249 (5 Lines) / 52571698 |
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Fax No.: |
91-22-24073462 |
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E-Mail : |
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Website : |
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Administrative
Office : |
74, Matru Smruti,
Road No. 4, Scheme No. 6, Sion (East) Mumbai - 400022, Maharashtra,
India |
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Tel. No.: |
91-22-24072249 |
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Fax No.: |
91-22-24073462 |
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Corporate
Office : |
Mahendra
Industrial Estate, Ground Floor, Plot No. 109-D Road No. 29, Sion (East),
Mumbai-400 022 |
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Plants : |
·
Plot Nos N-198,
G-60, E-120, K-40, K-41, E-9/3-4 and E-21/22, MIDC Industrial Area, Tarapur,
Village Pamtembhi, Taluka Palghar, Thane – 401506, Maharashtra, India ·
Plot Nos.
2902/2904, GIDC, Sarigam – 396155, District Valsad, Gujarat, India |
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R and D Centres
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·
Plot Nos.
N-198 & g-60, MIDC Industrial Area, Tarapur, Village Pamtembhi, Taluka
Palghar, Thane – 401506, Maharashtra, India ·
Plot Nos.
D-277/278, TTC Industrial Area, Turbhe, Navi Mumbai, Maharashtra, India |
DIRECTORS
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Name : |
Mr. Chandrakant
V. Gogri |
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Designation : |
Chairman |
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Name : |
Mr. Manilal P.
Savla |
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Designation : |
Vice Chairman |
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Name : |
Mr. Prakash M.
Patil |
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Designation : |
Managing Director
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Name : |
Mr. Satish P.
Nachane |
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Designation : |
Managing Director
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Name : |
Mr. Harshit M.
Savla |
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Designation : |
Joint Managing
Director |
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Name : |
Mr. Harit P. Shah |
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Designation : |
Whole Time
Director |
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Name : |
Mr. Rashesh C.
Gogri |
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Designation : |
Whole Time
Director |
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Name : |
Mr. Rajendra V.
Gogri |
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Designation : |
Director |
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Name : |
Mr. Shantilal T.
Shah |
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Designation : |
Director |
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Name : |
Mr. Uday M. Patil |
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Designation : |
Whole Time
Director |
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Name : |
Mr. Ramdas M. Gandhi |
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Designation : |
Director |
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Name : |
Dr. Vilas G. Gaikar |
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Designation : |
Director |
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Name : |
Mr. Bhavesh R. Vora |
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Designation : |
Director |
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Name : |
Mr. Sunil M. Dedhia |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Prakash
Khedekar |
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Designation : |
Company Secretary |
SHAREHOLDING
PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoter's
Holding |
5994471 |
51.20 % |
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Bodies Corporate |
601578 |
5.14 % |
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NRIs/OCBs |
583553 |
4.98 % |
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Banks, Financial
Institutions |
42010 |
0.36 % |
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Public |
4486938 |
38.32 % |
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Total |
11708550 |
100.00 % |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and
selling of pharmaceuticals and bulk drugs. |
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Products : |
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Exports : |
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Countries : |
Germany,
Switzerland, France, etc. |
PRODUCTION STATUS
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Particulars |
Unit |
Installed Capacity |
Actual Production |
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Pharmaceuticals |
Qty in 000’ Kgs. |
24020 |
17747.84 |
GENERAL
INFORMATION
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Customers : |
Some of its major
customers are as under:- ·
Renbaxy Labs
Limited ·
Cipla
Limited ·
Glaxo GSK ·
Pfizer ·
E Merck ·
Alkem Lab ·
Nicholas
Piramal ·
Aristo
Pharma ·
Zydus Cadila ·
Cadila
Healthcare ·
DRL ·
Hindustan
Lever ·
Dadur India ·
Micro Lab ·
F. D. C.
Limited |
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No. of Employees : |
Around 737 |
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Bankers : |
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Union Bank
of India, Union Bank Bhavan, 239 Vidhan Bhavan Marg, Nariman Point, Mumbai –
400 021, Maharashtra, India ·
Bank of
Baroda, P O Box 18, Vadodara – 396 006, Gujarat, India ·
Bank of Baroda,
Overseas Branch, Nariman Point, Mumbai – 400 021, India ·
Bank of
India ·
State Bank
of India ·
Citibank
N.A. ·
Corporation
Bank ·
Standard Chartered Bank ·
DBS Bank Limited ·
ING Vysya Bank Limited |
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Facilities : |
(Figures are in Rupees Millions)
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Parikh Joshi
& Kothare Chartered
Accountants |
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Address : |
49/2341, M. H. B. Colony, Gandhi Nagar,
Bandra (East), Mumbai – 400 051, Maharashtra, India |
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Associates/Subsidiaries : |
v
Aarti
Healthcare Limited v
Perfect Enviro
Control System Private Limited v
Aarti
Industries Limited v
Alchemie
Pharmachem Limited v
Gogri &
Sons Investment Private Limited v
Valiant
Chemicals Corporation v
Suyash
Chemicals v
Rupal Drugs
Limited v
Alchemie
Europe Limited, 7-9, ST. Mary’s Place, Bury Lanes, BL 9, ODZ, England v
Aarti
Pharmacare Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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2000000 |
Equity Shares |
Rs. 10/- |
Rs. 200.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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1,30,09,500 |
Equity Shares |
Rs. 10/- |
Rs. 130.095 millions |
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Less: 13,00,950 Equity Shares bought back |
Rs. 10/- |
Rs. 13.009 millions |
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GRAND TOTAL |
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Rs. 117.086
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
117.086 |
117.086 |
117.086 |
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2] Reserves & Surplus |
755.689 |
648.608 |
547.756 |
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NETWORTH |
872.775 |
765.694 |
664.842 |
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LOAN FUNDS |
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1] Secured Loans |
979.559 |
920.448 |
844.984 |
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2] Unsecured Loans |
841.326 |
492.324 |
223.135 |
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TOTAL BORROWING |
1820.885 |
1412.772 |
1068.119 |
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DEFERRED TAX LIABILITIES |
109.566 |
100.066 |
75.066 |
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TOTAL
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2803.226 |
2278.532 |
1808.027 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1496.452 |
1077.487 |
820.585 |
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Capital work-in-progress |
0.000 |
226.006 |
61.791 |
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INVESTMENTS |
204.049 |
14.570 |
3.145 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
625.546 |
525.742 |
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Sundry Debtors |
697.323 |
612.944 |
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Cash & Bank Balances |
59.642 |
85.234 |
1492.562 |
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Other Current Assets |
12.798 |
11.770 |
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Loans & Advances |
314.539 |
277.489 |
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Total Current
Assets |
1709.848 |
1513.179 |
1492.562 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
497.148 |
467.108 |
615.253 |
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Provisions |
132.667 |
119.534 |
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Total Current Liabilities |
629.815 |
586.642 |
615.253 |
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Net Current Assets |
1080.033 |
926.537 |
877.309 |
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MISCELLANEOUS EXPENSES |
22.692 |
33.932 |
45.197 |
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TOTAL
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2803.226 |
2278.532 |
1808.027 |
PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover [including other income] |
2534.741 |
2660.649 |
2386.621 |
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Profit/(Loss)
Before Tax |
151.090 |
206.122 |
170.567 |
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Provision for
Taxation |
14.304 |
40.500 |
13.200 |
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Profit/(Loss)
After Tax |
136.786 |
165.622 |
157.367 |
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Export Value |
786.260 |
705.845 |
759.810 |
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Import Value |
635.277 |
466.819 |
455.589 |
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Total Expenditure |
2304.470 |
2454.527 |
2216.053 |
QUARTERLY RESULTS
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PARTICULARS |
30.06.2006 |
30.09.2006 |
30.12.2006 |
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Type |
1st Quarter |
2nd Quarter |
3rd
Quarter |
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Sales Turnover |
690.900 |
800.700 |
696.900 |
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Other Income |
01.300 |
01.100 |
2.100 |
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Total Income |
692.200 |
801.800 |
699.000 |
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Total Expenditure |
585.700 |
711.800 |
627.000 |
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Operating Profit |
106.500 |
90.000 |
72.000 |
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Interest |
31.600 |
28.400 |
19.400 |
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Gross Profit |
74.900 |
61.600 |
52.600 |
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Depreciation |
21.100 |
21.200 |
21.900 |
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Tax |
11.100 |
02.600 |
3.000 |
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Reported PAT |
38.000 |
34.000 |
24.300 |
200606 Quarter 1 –
EPS is Basic 1. Company is operating as a singe segment
Company, engaged in Pharmaceuticals business hence, the disclosure requirement as
per AS-17 Segment reporting is not attracted. 2. The figures of the previous
periods have been regrouped and rearranged wherever necessary 3. The above
results reviewed by the Audit Committee, have been taken on record by the Board
of Directors at their meeting held on 31.07.2006. 4. There were no pending
complaints at the beginning of the quarter. During the quarter 3 complaints
were received and redressed. There was no complaints pending at the end of the
quarter.
200609 Quarter 2 –
Net Sales includes Gross Sales Rs 891.30 million Excise Duty
& Sales Tax Rs (90.60) million Expenditure Includes (Increase) / Decrease
in Stock in Trade Rs 95.80 million Consumption of Raw Materials Rs 484.00
million Staff Cost Rs 18.20 million Other Expenditure Rs 113.80 million Tax
Includes Provision for Tax Rs 2.60 million Deferred Tax Rs 3.80 million EPS is
Basic Status of Investor Complaints for the quarter ended 30.09.2006 Complaints
Pending at the beginning of the quarter Nil Complaints Received during the
quarter 07 Complaints disposed off during the quarter 07 Complaints unresolved
at the end of the quarter Nil 1. Company is operating as a singe segment
Company, engaged in Pharmaceuticals business hence, the disclosure requirement
as per AS-17 Segment reporting is not attracted. 2. The figures of the previous
periods have been regrouped and rearranged wherever necessary. 3. The above
results reviewed by the Audit Committee, have been taken on record by the Board
of Directors at their meeting held on 1910.2006.
200612 Quarter 3
Net Sales includes Gross Sales Rs 766.40 million Excise Duty & Sales Tax Rs (69.50) million Expenditure Includes (Increase) / Decrease in Stock in Trade Rs (22.60)million Consumption of Raw Materials Rs 525.60 million Staff Cost Rs 18.70 million Other Expenditure Rs 105.30 million Tax Includes Provision for Tax Rs 3.00 million Deferred Tax Rs 3.40 million EPS is Basic Status of Investor Complaints for the quarter ended December 31, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 04 Complaints disposed off during the quarter 04 Complaints unresolved at the end of the quarter Nil 1. The above results reviewed by the Audit Committee, have been taken on record by the Board of Directors at their meeting held on January 22, 2007. 2. The figures of the previous periods have been regrouped and rearranged wherever necessary. 3. Company is operating as a singe segment Company, engaged in Pharmaceuticals business hence, the disclosure requirement as per AS-17 Segment reporting is not attracted.
KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt
Equity Ratio |
1.97 |
1.73 |
1.52 |
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Long
Term Debt Equity Ratio |
1.29 |
1.04 |
0.77 |
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Current
Ratio |
1.26 |
1.27 |
1.27 |
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TURNOVER
RATIOS |
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Fixed
Assets |
1.54 |
1.98 |
2.16 |
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Inventory
|
4.71 |
5.16 |
5.31 |
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Debtors |
4.13 |
4.09 |
4.16 |
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Interest
Cover Ratio |
2.42 |
3.91 |
4.46 |
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Operating
Profit Margin (%) |
12.42 |
13.14 |
11.66 |
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Profit
Before Interest and Tax Margin (%) |
9.50 |
10.44 |
9.25 |
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Cash
Profit Margin (%) |
7.62 |
8.00 |
7.49 |
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Adjusted
Net Profit Margin (%) |
4.70 |
5.30 |
5.08 |
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Return
on Capital Employed (%) |
10.69 |
14.46 |
14.15 |
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Return on Net Worth (%) |
15.54 |
19.66 |
19.33 |
STOCK PRICES
|
Face Value |
Rs. 10/- |
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High |
Rs. 71.00/- |
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Low |
Rs. 70.00/- |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
The company was
promoted by Alchemie Group.
Subject is a Rs. 2380
millions pharmaceutical company is a leading manufacturer of bulk drugs in some
of the popular therapeutic groups as also speciality chemicals, having acquired
class expertise in the development and manufacturing of basic bulk drugs and
their intermediates. Steadily growing since its inception 1984, it has spread
its exports to over 65 countries and worldwide with a wide range of active
pharmaceutical ingredients.
Its products
basically used in treating diarrhoea and curing tuberculosis, enjoying a perennial
demand. Its customers include Pfizer, Searle, Knoll Pharmaceuticals (formerly
Boots Pharma), Glaxo, E Merck, etc. The entire production of its veterinary
products, dimetridazole, is exported.
Except metronidazole, none of its products is under the DPCO. Its bulk drugs are exported to Germany,
Switzerland, France, etc.
The second phase of
its backward integration project to set up facilities for glyoxal (the main raw
material for imidazoles) was implemented successfully. Meanwhile, as a step towards
environment-friendly technology, it has successfully commissioned a plant to
recover and market ammonium sulphate derived from plant effluents. Rupal Chemical Industries, a group company engaged in bulk drug manufacture,
was amalgamated with the company.
The company has
been given the status of “Export House” by the Government of India. The company’s projects to manufacture
secnidazole and dichlofenac sodium were implemented and their production has
started.
Company’s board has
approved the amalgamation of Alchemic Organics Limited with company.
During 2002-03 the
company made a buy back of equity shares of 1300950 shares of 1300950 shares
@Rs. 39 /- per share. The total pay out on account of buy back was Rs. 50.700
millions.
The company has
expanded the installed capacity of Bulk Drugs during the year 2003-04 by 588000
Kg and with his expansion the total capacity has risen to 18018000 Kg.
Biodata
Incorporated in 1984, subject is promoted by the Alchemie group. ADL's products, basically used in treating diarrhoea and curing tuberculosis, enjoy a perennial demand. Its customers include Pfizer, Searle, Knoll Pharmaceuticals (formerly Boots Pharma), Glaxo, E Merck, etc. The entire production of its veterinary products, dimetridazole, is exported. Except metronidazole, none of its products are under the DPCO. Its bulk drugs are exported to Germany, Switzerland, France, etc.
The second phase of its backward integration project to set up facilities for
glyoxal (the main raw material for imidazoles) was implemented successfully.
Meanwhile, as a step towards environment-friendly technology, ADL has
successfully commissioned a plant to recover and market ammonium sulphate
derived from plant effluents. Rupal Chemical Industries, a group company
engaged in bulk drug manufacture, was amalgamated with the company.
ADL was awarded a certificate of merit by Chemexcil for its outstanding
performance in exports. The company has been given the status of Export House
by the Government of India. The company's projects to manufacture secnidazole
and dichlofenac sodium were implemented and their production has started.
Company's Board has approved the amalgamation of Alchemic Organics Limited with
the company. During 2002-03 the company made a buy back of equity shares of
1300950 shares @ Rs.39/- per share. The total pay out on account of buy back
was Rs.50.7 Millions
/-.
The company has expanded the installed capacity of Bulk Drugs during the year
2003-04 by 588000 Kg and with this expansion the total capacity has risen to
18018000 Kg.
Dividend
The Directors recommend
Dividend of Rs.1.50 ps @ 15% per share for the year ended 31st
March, 2006. Total cash outflow on account of dividend payment including dividend
tax will be Rs.20.2 Millions (Previous Year: Rs. 39.8 Millions). The dividend
after approval by the shareholders at the Annual General Meeting will be paid
on or after 07.08.2006 to the eligible shareholders.
Operations Review
During the year under
review, the Company has achieved sales turnover of Rs. 2790.0 Millions
(Previous Year: Rs. 2652.7 Millions) registering a growth of 5.18%. The Company
has achieved export turnover of Rs. 1040.5 Millions as against Rs. 943.3
Millions in the previous year registering growth of 10%. Operating Profit
before Interest, Depreciation & Tax was Rs 307.7 Millions (Previous Year:
Rs. 328.3 Millions), registering a decline of 6.27%. Profit after Tax was Rs.
127.1 Millions (Previous Year: Rs. 140.6 Millions), registering a decline of
9.60%. The
decline in the profit is mainly on account of higher revenue expenditure
incurred in USFDA Compliant Plant, increased crude oil prices and pricing
pressures on account of increased competition.
JOINT VENTURE IN CHINA
The Company has entered into joint venture with a Chinese Company
engaged in Active Pharmaceutical
Ingredients (APIs) manufacturing to form Huanggang Yinhe Aarti Pharmaceutical Company Limited for manufacturing and selling of APIs in China. The Company will have 26% stake in the said Chinese Joint Venture.
Management Discussion And Analysis
Pharmaceutical Industry - Global &
Indian
According to IMS
Health (NYSE:RX), the world pharma sales grew by 7 per cent to touch 602
billion dollars in the last calendar year and in the Ten major markets which
accounted for 81 per cent of the world market, the audited growth in sales
stood at 5.7 per cent as against 7.2 per cent in the previous year.
North America
continues to be largest pharmaceutical market followed by Europe and Japan.
Asia Pacific and African regions baring Japan also recorded a higher growth of
11 per cent during the year ended on December, 2005 with gross sales of 46.4
billion dollars.
The IMS figures
for 2005 indicate a definite shift in pharmaceutical market in the years to
come. China, India and Brazil, the three fast growing economies are going to
play a decisive role in the pharmaceutical scene in the years to come judging
by their current rate of growth and cost advantages as against the relatively
slow growth of top ten markets. A notable trend in the world pharma market
place is the growing role of generics as increasing number of patients bear
their own healthcare costs and the governments are getting sympathetic to their
cause. This has to inevitably bring a steady phase of price control pressures
on several medications in the years to come in all the markets.
The pharmaceutical
industry in India is estimated at US $5.22* billion, growing at a rate of 8.6%
annually. Globally, the Indian pharmaceutical industry ranks 4th in terms of
volume and 13th in terms of value of the total global sales.
The Indian
Pharmaceutical Industry today is in the front rank of India's science-based
industries with wide ranging capabilities in the complex field of drug
manufacture and technology. It ranks very high in the third world, in terms of
technology, quality and range of medicines manufactured. From simple headache
pills to sophisticated antibiotics and complex cardiac compounds, almost every
type of medicine is now made indigenously.
The pharmaceutical
industry in India meets around 70% of the country's demand for bulk drugs, drug
intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals
and injectibles. The Indian Companies produces the complete range of
pharmaceutical formulations, i.e., medicines ready for consumption by patients
and about 350 bulk drugs, i.e., chemicals having therapeutic value and used for
production of pharmaceutical formulations.
Outlook
The Company is well
poised to take the challenges of new age pharma industry with its modern
technology and skilled human resources with its clear vision to become a
leading manufacturer of bulk drugs and high value Active Pharmaceutical
Ingredients.
Future Plans of action:
The Company's
R&D programmes is currently focused on new product in Non-Steroidal NSAID
compounds, Antiparasitic, Calciun antagonist, anti anginal, Laxative,
antihistamine, Coronary vasodilator and NO Otropic. Company will continue to do
R &D on API's which are off-patents and will work on patents non infringing
route systhesis. The R& D team through its intensive research efforts
expected to develop many new products in future. And as a result the Company
expects substantial commercial benefits in future. After taking initial
development in Laboratory scale further development will be carried out on
pilot scale at respective plants of the Company at different locations.
The company’s fixed
assets of important value include leasehold land, building, trademark, plant
& machinery, office equipments, furniture and vehicles.
Subject exports its
entire production of veterinary products and dimetridazole.
It is in trade
terms with:
v
Pfizer Limited
v
Searle
v
Knoll
Pharmaceuticals (formerly Boots Pharma)
v
Glaxo
v
E Merck
About Aarti Group
The
first unit of Aarti Group, Alchemie Laboratories, commenced
commercial production of Dimethyl
Sulphate (DMS) in the year 1975. Today, AARTI has acquired world-class expertise in the development and
manufacturing of basic bulk chemicals,
dyes & pigment intermediates, pharmaceuticals and agrochemicals along with
their intermediates, rubber chemicals, surfactant intermediates and speciality
chemicals. AARTI is amongst the largest producers of Benzene based basic
and intermediate chemicals in
India.
Subject has
attained a total turnover of US $ 189 million in the year April 2003 - March
2004 with flagship companies Aarti
Industries Limited (Ail) and Aarti Drugs Limited (ADL) listed on Stock
Exchanges. Subject has a Subsidiary Aarti Healthcare Limited (AHCL),
which is engaged in manufacturing of Active pharma ingredients ranging from Ace
Inhibitors, Broncodialators to Steroids.
Subject has manufacturing
sites at Gujarat, India (Vapi,
Sarigam and Jhagadia) and at Maharashtra,
India (Tarapur & Dombivli).
Recognizing the
importance of research, subject has established three full-fledged DSIR (Dept. of Scientific & Industrial
Research)-Government of India recognized R & D centers, which carry
innovative product and process development work.
Subject has the
privilege of catering to the requirements of leading manufacturers of dyes,
pigments, pharmaceuticals, agrochemicals and rubber chemicals in countries such
as USA, UK, Germany, Spain, Italy,
Switzerland, Belgium, Japan, Korea, China, Russia, etc. Subject also has
representatives in USA & a
subsidiary company in UK to
provide better services to its Export Customers.
Award and Achievement
The
pharmaceutical industry in India today, estimated at US$ 3.8 billion is one of the
largest and most advanced among developing countries. Globally, it ranks 4th in
volume terms and 13th in value terms. It manufactures about 350 bulk drugs
belonging to several major therapeutic groups. Novel innovative process routes
and synthetic organic chemistry are its main strengths in research and
development. 250 manufacturers of the organized sector represent 70% of its
production. Leading in some of the popular therapeutic group, is the US$ 44
million public limited pharmaceutical company, Aarti Drugs Limited Steadily
growing since its inception in 1984, it has spread its exports to over 65
countries across the globe. It was Chosen by the Chemexcil (Basic chemical
& pharmaceutical export promotion Council of India) for its First award in
the drugs and pharmaceuticals category, it was also voted as the Best Vendor by
OPPI (Organization of pharmaceuticals Producers of India) for the year 2001.
Its core competence lies in development of cost effective synthesis routes for
bulk drugs and intermediates.
Subject,
a part of the US$ 160 million Aarti group of industries, has already
established a strong presence in the anti-diarrhea, anti - ulcer and anti
inflammatory therapeutic groups with products like tinidazole, metronidazole, secnidazole,
ornidazole, diclofenac sodium, ranitidine hcl, nimesulide, rofecoxib, etc. It
also manufactures vitamins, anti-asthama, anti-HIV, anti-arthritis,
anti-fungal, antibiotics, ACE inhibitors, anti-osteoporosis, anti-diabetic,
anti-cholinergic, sedatives and anti-depressant drugs with the help of
manufacturing facilities situated at different locations.
The
manufacturing-units are of ADL GMP certified. It is also in the process of
securing ISO 9002 compliance for all its units and one of the units has already
been approved. Moreover, the facilities have been audited and approved by MNCs
such as Pfizer, Rhone Poluenc, Merck, etc. as also by many of its overseas
buyers.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial Crime
:
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or investigation
registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.74 |
|
UK Pound |
1 |
Rs.84.90 |
|
Euro |
1 |
Rs.57.79 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
47 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|